Great Lakes Dredge to Buy Terra Contracting

January 2, 2013

Great Lakes Dredge & Dock Corp., Oak Brook, Ill., has acquired Terra Contracting for $20 million. Terra provides remediation, maintenance/repair, abatement and emergency response services. Terra owner Steve Taplin has been named president of the new company.

Headquartered in Kalamazoo, Mich., Terra employs approximately 200 engineering, operations and administrative staff and serves customers in more than 30 states in the environmental, infrastructure, energy, industrial, transportation, waste water and construction sectors. Terra’s services include the removal and remediation of contaminated sediment, soil and groundwater, superfund site clean-ups, hazardous waste removal and brownfield site restoration, facility and equipment decontamination and decommissioning, tank cleaning, hazardous materials abatement, emergency response services, and municipal utility, sewer and wastewater infrastructure maintenance, inspection and refurbishment.

Great Lakes expects Terra to generate approximately $45 million of service revenue with 15-percent EBITDA margins in 2013, while also generating approximately $20 million of pass through transportation and disposal revenue. Terra will add approximately $20 million to Great Lakes’ year-end 2012 backlog excluding project option opportunities.

“The Terra acquisition fits our strategic vision to gain a stronger foothold in the environmental remediation market,” said Jon Berger, Great Lakes CEO. “Terra will broaden our demolition segment with additional services and expertise as well as expand our footprint in the Midwest. Terra reinforces our efforts to develop relationships with larger industrial and governmental clients. Additionally, our rivers & lakes operations can leverage Terra’s environmental remediation focus to accelerate its participation in the environmental dredging market.”

“With Terra comes a seasoned, highly knowledgeable and experienced management team, including owner Steve Taplin, all of whom are excited to team with Great Lakes to grow the environmental remediation business,” said Bruce Biemeck, Great Lakes president/COO. “We look forward to working with the Terra team to leverage our combined technical expertise and expanded asset base to broaden the Great Lakes footprint and market reach in this strategic market sector, while providing Terra with the resources and financial capability to grow into new services and geographic regions.